My opinion on Cap and Trade systems.

I started summer school last week. No, I don't ride the short bus. I am taking Social Responsibility and Business Ethics. So of course we are going to be talking a lot about people being unethical. I'm really going to enjoy this class because it will require us to share our opinions on a lot of things.

And if there is one thing I am not short on its opinions.

Then, my position as an environmental compliance specialist at a copper mine also lends me a very unique perspective.

One question that came up in class the other day that I didn't comment on because the conversation turned too rapidly away from it was the proposed CO2 cap and trade system. The question was asked: Is it ethical to trade pollution credits?

The simple answer is that it is unethical not to. If a production facility is told to simply cap their emissions they will do so precisely at the legal limit because there is no economic incentive to do otherwise. Where, if the same facility is rewarded for reducing their emissions below the required limit by being allowed to sale the excess pollution to less clean facilities, they will do so.

The great part is that the "dirty" facility that is purchasing the excess credit will still be limited by pollutant limits because there is a financial disincentive to purchase credits.How cap and trade really excels is in the second round of emission reductions.

Then, say five years into the program, the government reduces emission limits even further than the initial round and the most innovative polluters have prepared by installing even better control technologies.

Also, if an environmental NGO wants to be forward thinking, they can purchase the excess credits thereby directly reducing pollution. It would be unethical to use any other system because no other system works as smoothly or efficiently to reduce pollution